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    The document defines opportunity cost as the next best alternative that is given up when choosing one option over another due to scarcity of resources. It provides the example of choosing to build a school instead of a hospital as the opportunity cost is the forgone hospital. The document also defines a production possibility curve as showing the different combinations of two products an economy can produce with limited resources. It demonstrates how the curve shifts based on prioritizing one good over another and calculates the opportunity cost between points on the curve as the quantity of one good forgone to produce more of the other.

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    The document defines opportunity cost as the next best alternative that is given up when choosing one option over another due to scarcity of resources. It provides the example of choosing to build a school instead of a hospital as the opportunity cost is the forgone hospital. The document also defines a production possibility curve as showing the different combinations of two products an economy can produce with limited resources. It demonstrates how the curve shifts based on prioritizing one good over another and calculates the opportunity cost between points on the curve as the quantity of one good forgone to produce more of the other.

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    5 views3 pages

    Micro Assignment

    Uploaded by

    iamshah
    The document defines opportunity cost as the next best alternative that is given up when choosing one option over another due to scarcity of resources. It provides the example of choosing to build a school instead of a hospital as the opportunity cost is the forgone hospital. The document also defines a production possibility curve as showing the different combinations of two products an economy can produce with limited resources. It demonstrates how the curve shifts based on prioritizing one good over another and calculates the opportunity cost between points on the curve as the quantity of one good forgone to produce more of the other.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Assignment

    Presented to :- Maryam Ali


    Presented by :- Syed Asghar Raza
    Reg No :- 2093135
    Programme :- BBA (HONS)
    Oppurtunity Cost
    Definition :-
    The concept of an opportunity cost was first developed by John
    stuart Mill.The next best alternative is know as oppurtunity cost or when
    you choose one thing and let other go.

    Example :-
    If we have choice to make a school or hospital.We make school
    instead of hospital due to Scarcity.The Hospital will be the Oppurtunity Cost
    .

    Production Possibility Curve


    Definition :-
    It shows the different combination of two products that the
    country can produce using all the available resources .

    Oppurtunity Cost with PPC :-

    This graph represents that the country is making Food and Computers.If
    the country produce less Food then the curve will shift inwards and if it is
    producing more Food the Curve will shift outward.In this graph the
    oppurtunity Cost between 5 and 6 is 1 food unit(Q and R) and Oppurtunity
    cost between 9 and 10 Computer is 3 Food units(T and V)

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